The potential abandonment of the lawsuit against Coinbase by the Securities and Exchange Commission (SEC) could bolster the outlook not only for cryptocurrencies that were previously tagged as securities during the past regime, but also could enhance the value of Robinhood’s (HOOD) stocks.

More Details: SEC Likely to Dismiss Lawsuit against Coinbase, Paving Way for U.S. Crypto Progress

While the SEC hasn’t formally cast its vote on the Coinbase issue, it’s expected to be a positive development for the sector that has encountered strong regulation from the agency during Joe Biden’s term. Robinhood found itself amongst the exchanges that had to remove all tokens that were suspected to be securities in June 2023. However, following Donald Trump’s victory in the U.S. presidential election, the exchange reintroduced some of these tokens, including Solana’s SOL, which were earlier alleged by the SEC to be securities.

With the likelihood of the SEC dismissing the Coinbase lawsuit, exchanges such as Robinhood may feel more comfortable expanding their token offerings, potentially boosting trading profits. The renowned crypto platform recently reported a 115% year-on-year rise in its fourth-quarter revenue, surpassing Wall Street’s predictions, primarily due to an increase in cryptocurrency trading income.

According to Cryptorank.io, the five highest-value tokens that were suspected of being securities include BNB, Solana (SOL), Cardano (ADA), Tron (TRX), and Toncoin (TON).

This development may also motivate other companies to consider going public in the U.S. markets. Multiple crypto firms such as Blockchain.com, BitGo, Gemini, EToro, Bullish Global (CoinDesk’s parent company), Ripple, and Circle are already speculated to be contemplating initial public offerings (IPOs) in the U.S.